Is it not so that Resident Evil requires Voodoo compatible graphics accelerator?
I think it does and that is one reason for not working in Virtual PC. But I think you can get it working if you have an ATi Graphics card, there is an emulator out there that will enable emulation of Voodoo Glide using ATi OpenGL drivers.
I can not remember where I found it but take a look at
www.guru3d.com or something...